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Technology Stocks : VMware, Inc. (VMW)
VMW 115.98+1.7%11:36 AM EST

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To: Glenn Petersen who wrote (297)10/21/2015 11:52:09 AM
From: Glenn Petersen   of 345
 
VMW is taking a beating this morning:

VMware Declines on Analysts' Rating Downgrades, Weak Bookings

Lily Katz
BloombergBusiness
October 21, 2015 — 9:43 AM CDT

VMware Inc., a maker of software used to consolidate applications on corporate servers, fell the most in more than 2 1/2 years after at least 10 analysts downgraded the shares.

The company posted third-quarter profit yesterday that topped estimates, underscoring its status as a key asset in the sale of parent company EMC Corp. to Dell Inc., yet weak bookings -- a measure of future revenue -- added to anxiety among shareholders about the software maker’s independent business model.

VMware slid 18 percent to $56.48 at 10:41 a.m. in New York trading, and dropped as low as $56.18, the biggest intraday decline since January 2013. The shares had lost 17 percent this year through Tuesday.

Analysts at Pacific Crest Securities cut their rating on VMware to the equivalent of neutral, citing weak billings that resulted from customer uncertainty and weakness in large global economies. Daniel Ives, an analyst at FBR & Co., said the past week or so has been like “A Nightmare on Elm Street” for VMware shareholders, with the EMC-Dell deal putting pressure on the stock.

VMware said its bookings rose 3 percent. Analysts had anticipated an 11 percent gain, said Abhey Lamba, an analyst at Mizuho Securities USA Inc.

bloomberg.com
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